CEPA

Industry in Alberta was quick to celebrate the federal government’s approval of the Trans Mountain and Line 3 pipelines on Tuesday, but opponents vow to delay or kill the projects by any means possible.

“I think that Canada’s reputation as a place that can move projects forward took a step forward today,” said Tim McMillan, the president and CEO of the Canadian Association of Petroleum Producers.

McMillan said this was a positive move toward reducing the price differential for Canadian oil. Producers face sometimes steep discounts on the price they receive for a barrel of oil in the U.S. compared with world prices.

With the ability to send more oil to Pacific markets, and increased capacity on a rebuilt Line 3 pipeline to the U.S., Canada’s oil and gas companies should be able to get a better price.

University of Calgary economist Trevor Tombe said that without new pipelines, the National Energy Board predicted a shortfall of $10 per barrel.

“That adds up to over $10 billion a year in forgone revenue for producers,” he said.